Moving problems or two-sided solutions? The impact of forest carbon projects in developing countries to compensate emissions: a case-study of the “CO2OL Tropical Mix Reforestation” project in Panama

Abstract

An increasing number of people, resources and ecologies are becoming part of the global environmental governance system through enrolling these into the operations and modalities of global carbon markets. Among scientists there is doubt about the effectivenessin reducing emissions and the local impacts of projects that are part of this global carbon market. This thesis analyses the influence of the “CO2OL Tropical Mix Reforestation” project on local development and the environment. The project has fincas across different provinces in Panama and combines the sequestration of carbon with sustainable timber production and small-scale agroforestry in sustainable cacao. This study focuses on the project influence on the physical, human and financial capital of directly involved people and surrounding communities and defines the role in reducing carbon emissions, conserving forests and improving biodiversity and other ecosystem services. Besides, the specific uncertainties of the forest carbon project in terms of additionality, leakage and permanence have been assessed. For this research, a retrospective evaluation with project employees has been conducted including the use of secondary data and observation techniques.